I am on the record as saying GroupOn should have sold to Google and then shouldn’t have raised $950B. Starting today, the biggest battle that GroupOn faces will start to prove me either right or wrong. Facebook has launched “Facebook Deals” in 5 test cities.
It’s not quite as threatening as it sounds because you can already “Like” GroupOn deals on Facebook, allowing them to spread viraly through your feed. Facebook has a chance to link this information up even better though, perhaps working with other partners so that buying or liking specific deals can trigger other marketing. At the end of the day it’s just hard to imagine a standalone platform like GroupOn being able to compete with an integrated one like Facebook.